Prepare a multiple-step income statement, Accounting Basics

Assignment Help:

Prepare a Multiple-Step Income Statement based on the information presented in problem 4 above.                   

Answer :                                                               

                Lotu Wo Company                                          

                Multiple-Step Income Statement                                                            

                Particulars           Amount in mce_markernbsp;                     

                Net Sales             560,000                

                Less: Cost of goods sold                366,000                

                Gross Profit        194,000

                Operating expenses:                                     

                General and administrative expenses    12,000                  

                Selling expenses              18,000                  

                Operating income / Comprehensive income       164,000

                Other income / (expense)                                          

                Interest expense             2,000                    

                Interest revenue             600                        

                Net profit before tax      162,600                

                Less: Income tax expense            50,000                  

                Net profit after tax          112,600 

 


Related Discussions:- Prepare a multiple-step income statement

An invoice for product x totals $1, An invoice for product X totals $1,200 ...

An invoice for product X totals $1,200 and is dated July 6, 2000 with terms 2/10-60X. If the invoice is paid on September 3, 2000, what is the net amount of payment? A. $912

What do you mean by overhead, Q. What do you mean by Overhead? Overhead...

Q. What do you mean by Overhead? Overhead -- a cost that doesn't vary with the level of production or sales and generally a costnot directly involved with sales or production.

Define an accounting system, Q. Define an accounting system? Effects fr...

Q. Define an accounting system? Effects from a recent survey of 1400 chief financial officers (CFOs) indicate that tomorrow's accounting professionals will be called upon to br

Can you explain about balance sheet, Q. Can you explain about balance sheet...

Q. Can you explain about balance sheet? The balance sheet, sometimes called as the statement of financial position lists the liabilities, company's assets and stockholders' equ

Fifo under periodic inventory procedure, Q. FIFO under periodic inventory p...

Q. FIFO under periodic inventory procedure? The FIFO (first-in, first out) method of inventory costing suppose that the costs of the first goods purchased are those charged to

Business transactions and the accounting equation, Business transactions an...

Business transactions and the accounting equation A transaction is any activity which changes the value of a firm's assets, liabilities or owner's equity. Every transaction

Suppose you want to have $5, Suppose you want to have $5,000 saved at the e...

Suppose you want to have $5,000 saved at the end of five years. The bank will pay 2% interest on your money. How much would you have to deposit today to have the $5,000 you want

Film and television costs - accounting policies, Q. Film and television cos...

Q. Film and television costs- accounting policies? Film as well as television production and participation costs are expensed based on the ratio of the current period's gross r

Show employment opportunities in accounting, Q. Show Employment opportuniti...

Q. Show Employment opportunities in accounting? Throughout the last half-century accounting has gained the same professional status as the medical and legal professions. At pre

Liquidity ratios (short term solvency ratios), Liquidity Ratios (Short Term...

Liquidity Ratios (Short Term Solvency Ratios):   These Ratios calculate the capability of the firm to meet its current obligations. They point out whether the firm has enough li

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd